evoke reports first revenue growth since early 2022

LONDON - evoke (LSE: EVOK), a global leader in betting and gaming, reported its first quarter of year-over-year revenue growth since Q1 2022. In the three months ending September 30, 2024, the company saw a revenue increase of 3% compared to the same period last year, achieving £417 million. This growth is attributed to market share gains in international markets and a 10% rise in gaming, despite a £17 million impact from customer-friendly sports results in September.

The online sector experienced an 8% revenue growth, with core markets showing an 11% increase. These markets now account for almost 85% of evoke's online revenues, including Romania, which has been identified as a new core market. The UK and Ireland online segment grew by 3%, with a boost in gaming offset by a decline in betting due to favorable sports outcomes for customers. Internationally, revenues increased by 14%, with Italy, Spain, Denmark, and Romania driving growth.

Retail revenues, however, declined by 9%, influenced by customer-friendly sports results and market share losses in gaming. In response, the new Retail managing director, who began in September, has implemented measures to improve short-term trading and is overseeing the rollout of over 5,000 new gaming machines starting in October.

The company's strategic highlights include a focus on profitable and sustainable revenue growth in core markets, improved customer engagement through new product launches, and enhanced brand strength. evoke is also working on improving profitability through cost savings and efficiency gains, such as reducing marketing costs and implementing a new operating model. Additionally, the company is aiming to deleverage through disciplined capital allocation, including the acquisition of winner.ro, which positions evoke as a market leader in Romania.

CEO Per Widerström expressed satisfaction with the company's turnaround and the return to revenue growth. He highlighted the online business as a growth engine and noted the implementation of the company's strategy for long-term success.

The outlook for the second half of 2024 remains unchanged, with revenue growth expected to be between 5-9% and an improved Adjusted EBITDA margin. The company's FY25 expectations also remain the same, with a focus on continued revenue growth, margin expansion, and leverage reduction.

This article is based on a press release statement from evoke.

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Source: Investing.com